On a Per Unit Basis, a Variable Cost Will

question 20

Multiple Choice

On a per unit basis, a variable cost will:

• A) vary from unit to unit.
• B) remain constant.
• C) decrease.
• D) increase.

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Definitions:

Coefficient

A numerical value that multiplies a variable in an equation, serving as a measure of some property or characteristic.

Price Elasticity

Refers to how sensitive the quantity demanded of a good is to a change in its price.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity demanded for a given period.

Price Elasticity

measures how sensitive the quantity demanded or supplied of a good is to a change in its price, indicating the responsiveness of market participants to price changes.